What do ya know. Back in about late 2007 early 2008 Jack Blake started getting letters about leasing his 20 acres. The offer letters were from Cobra type companies. Jack called a couple of them on the phone and they did not return Jack's calls or he would have been leased for like $100-$200 per acre. Thank God Jack didn't lease to them.
In June-July of 2008' CHK offered $4000.00/acre and Jack jumped on it not knowing what to do and not having the GHS network as a resource. Also not knowing that my neighbor that held out got 12k an acre a couple months later right before the bottom dropped out. Jack did have a lease expert (not an attorney-Jack should have also had an Attorney look at the lease, but didn't) make an addendum page for me and I got 25% cost free royalty.
My gas sales price will be price recieved at point of sale or market price at the wellhead. Jack Blake should have put something like at the Henry Hub price or something. The way I worded it they may be able to squeeze me some. At $3.33 gas price Jack Blake can't afford to be squeezed.
Jack put in a poor s/i royalty fee of something like $15.00/acre per year up to 2 years. Looking back I could have put $1500.00/per acre per year. They just wanted the lease.
Anyway Jack got 80 k for his lease. Since the initial lease Jack now knows quite alot about HS deals, most was learned first hand with guidance from the great experts at Go Haynesville Shale! And that is no shit. Between pipelines and seismic and such Jack picked up another $65,000.00. He has made $145,000 off of 20 acres that was only worth about $20,000.00 before the HS.
Jack thinks if you add it all up he should see his first $250,000.00 of HS money by the time MM # 21 plays out.
They say it'll take 5-6 wells to exploit a section with current technology. If this is so, there will be money coming for years after jack is pushin up daisies. They'll produce it slowly to hold the leases. Maybe the gas price will go up, but Jack doesn't think so.
Any of you people in the other shales, specifically the Eagle Ford due to it having condensate/very light oil- ya'll are sittin on a gold mine! Only lease for big bucks howled Jack Blake and get yourself a network of experts! GO EAGLEFORD SHALE!
Jack will be getting a division order and then royalties in about 6 months if the good Lord is willing and the creek don't rise............................................
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